In Re the Estate of Olson

2008 SD 4, 744 N.W.2d 555, 2008 S.D. LEXIS 4, 2008 WL 101713
CourtSouth Dakota Supreme Court
DecidedJanuary 9, 2008
Docket24127, 24142
StatusPublished
Cited by15 cases

This text of 2008 SD 4 (In Re the Estate of Olson) is published on Counsel Stack Legal Research, covering South Dakota Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re the Estate of Olson, 2008 SD 4, 744 N.W.2d 555, 2008 S.D. LEXIS 4, 2008 WL 101713 (S.D. 2008).

Opinions

[557]*557GILBERTSON, Chief Justice

(on reassignment).

[¶ 1.] Wayne Olson, in his capacity as the personal representative of Glenn Olson’s estate, sold real property that had been specifically devised to James Olson and other devisees as tenants in common. Personal property passing under the residuary clause was also sold at public auction. The trial court confirmed the sales but sanctioned the personal representative $1,000 for failing to give James advance notice of the public auctions. We reverse and remand in part and affirm in part.

FACTS AND PROCEDURAL HISTORY

[¶ 2.] Glenn Olson died testate on August 3, 2002. At the time of his death, he owned approximately 132 acres of farmland, including a homestead. This realty and home, which was built in 1900, had been in the Olson family for generations. Although apparently a modest homestead by current standards, Glenn had spent his entire life living in it while farming the adjoining land. His sister also lived in the homestead and took care of housekeeping chores. Wanting to keep this farm in the family he wrote a will where he specifically devised this real estate to James and six other nieces and nephews (collectively heirs). Glenn’s personal property was devised to the same heirs through the residuary clause.

[¶ 3.] Probate of Glenn’s will is subject to South Dakota’s Uniform Probate Code (UPC) as it was drafted subsequent to South Dakota’s implementation of the UPC in 1995. Therefore, his estate was informally probated in accordance with the UPC.1 Wayne was appointed personal representative in September 2002. Following his appointment, Wayne determined that the buildings on the homestead were in such poor condition that they constituted a drain on the estate. Consequently, without the notice to the heirs as required by SDCL 29A-3-715(b), he sold the specifically devised real property at a public auction. The personal property was sold separately, also without the same requisite notice to the heirs. The trial court found as a finding of fact, “[t]he only notice of the sale given by the personal representative was 1 or 2 years earlier when he wrote the other heirs indicating that he was considering whether it should be sold.” It entered a conclusion of law that ‘Wayne Olson’s notices were inadequate.” At oral argument Wayne conceded that the sales did not comply with SDCL 29A-3-715(b).

[¶ 4.] James had filed a demand for notice pertaining to the estate under SDCL 29A-3-204, which requires that any “order or filing” pertaining to the estate not be “made or accepted” without providing notice to James. According to Wayne, he conducted the public auction of the real and personal property under SDCL 29A-3-711, which provides that personal representatives may exercise their powers “without notice, hearing, or order of court.”

[¶ 5.] James ultimately did receive legal notice of the completed sales through the filing of the summary of these public sales. He also received notice of the motion to confirm the sales. James appeared and objected to the confirmation of both sales. Following a hearing on the motion, the trial court confirmed the sales, finding that the land was a drain on the estate, the sales were conducted in a reasonable manner, and the land brought an exceptional price exceeding market value. Ultimately, the trial court concluded that “[t]he evidence is abundant that the sale [of real [558]*558property] was conducted for a good reason.”

[¶ 6.] James did not object to the court’s finding that there was good reason to sell the property. Instead, James argued that Wayne did not have the power to sell specifically devised property. James also claimed that he was entitled to advance notice of the public auctions under SDCL 29A-3-204 and SDCL 29A-3-715(b). The trial court ultimately concluded that Wayne possessed a power of sale under the UPC. Although the court also found that Wayne did not give advance notice of the public auctions as required by SDCL 29A-3-715(b), it concluded that James had not been damaged by the lack of notice. Therefore, the sales were not voided on this basis. Instead, the court sanctioned Wayne $1,000 for failing to give advance notice.

[¶ 7.] We have restated the parties’ issues2 on appeal as follows:

1. Whether the personal representative possessed the power to sell specifically devised land when the power of sale was not contained in the will and the sale was not necessary to pay estate debts.
2. Whether the sale of personal property was void under SDCL 29A-3-204 and SDCL 29A-3-715(b) for failure to give advance notice of the public auction, and if not void, was the remedy of damages proven.

By notice of review, Wayne raises the following issue:

3.Whether the trial court erred in assessing a sanction against the personal representative for failure to give advance notice of the sales.

STANDARD OF REVIEW

[¶ 8.] This Court’s standard of review is well settled:

This Court reviews a trial court’s findings of fact under the ‘clearly erroneous’ standard and overturns a trial court’s conclusions of law only when the trial court erred as a matter of law. Century 21 Associated Realty v. Hoffman, 503 N.W.2d 861, 864 (S.D.1993) (citations omitted).... Questions of law are reviewed de novo. City of Colton v. Schwebach, 1997 SD 4, ¶ 8, 557 N.W.2d 769, 771. “This Court interprets statutes under a de novo standard of review without deference to the decision of the trial court.” In re Estate of Jetter, 1997 SD 125, ¶ 10, 570 N.W.2d 26, 28.

Matter of Estate of O’Keefe, 1998 SD 92, ¶ 7, 583 N.W.2d 138, 139.

[559]*559ANALYSIS AND DECISION
[¶ 9.] 1. Whether the personal representative possessed the power to sell specifically devised land when the power of sale was not contained in the will and the sale was not necessary to pay estate debts.

[¶ 10.] James first argues that Wayne was without power to sell specifically devised land because there was no power of sale provision in the will and the sale of specifically devised property was inconsistent with the specific devisees’ right to receive property in kind. We agree.

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Bluebook (online)
2008 SD 4, 744 N.W.2d 555, 2008 S.D. LEXIS 4, 2008 WL 101713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-the-estate-of-olson-sd-2008.